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116.28
July 30, 2010
XXXV | 5 July 10
Up FrontNewsBrandWatchFeatureTrendsTECHNOLogisticsBlack & White
Taking modern retail for granted
The Government is walking the tightrope of balancing the needs of the economy with the pressures from small traders. However, it must not take modern retailing for granted as it holds back the ‘flood waters’ of modern commerce. Modern retail should be viewed as part of infrastructure development. The recent market slowdown has already taken a toll on many players. Some have even closed down or are still looking at an elusive break-even. The Government’s plug on FDI in retail has already played havoc and over Rs15,000cr of PE funds remain uncommitted. The industry certainly needs investments and some estimates put it at $100bil over five years. This will definitely require external funding. That is why the DIPP’s re-igniting a debate on FDI in multi-brand retailing is not a day too soon. Some of the suggestions of limiting MNC retailers to cities with more than one million population, ensure investment in distribution infrastructure and keep a floor on store size is also acceptable as a way out to mollify the small trader lobby. Other reforms that are urgently required include rolling out of GST and the roll back of service tax on rent. The Government can only take modern retail for granted at the nation’s peril!

 
 
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